HSN code = Harmonized System of Nomenclature. It's a 6-digit code assigned to each product.

It must be shown in GST invoices for transactions above 1,50,000 rupees (Rule 46). However, businesses should include it in all invoices anyway.

Let's understand the HSN code system and how to find the code for your products.

How Does the HSN Code System Work?

HSN codes have 6 digits. The structure is:

  • First 2 digits: Chapter (category within a section)
  • Next 2 digits: Heading (subdivision within a chapter)
  • Last 2 digits: Subheading (the exact product type)

Example: For agarwood oil, the HSN code is 3301. 33 = chapter (oils), 01 = the exact type (agarwood).

How Do You Find an HSN Code?

Method 1: HSN Master List (Official Source)

Visit the official GST website:

  • Visit: www.cbic.gov.in
  • Download the "HSN Code List" PDF
  • Use CTRL+F to search for your product
  • You'll find the code

Method 2: Online HSN Code Finder

Useful websites:

  • www.sangsad.ac.in (HSN search tool)
  • Google "HSN code for [product name]"
  • Ask your chartered accountant

Method 3: Find Similar Products You Already Use

Check the HSN codes you're already using for similar products:

  • If you sell cotton shirts (6104), cotton pants will be around 6104
  • Look for patterns and find the similar category

Common HSN Codes — 20 Categories

Product Category HSN Code Example
Vegetables (fresh) 0701-0714 Potatoes = 0701
Fruits (fresh) 0801-0810 Apples = 0808
Milk & milk products 0401-0409 Milk = 0401
Cotton fabric 5208-5209 Printed cotton = 5209
Clothing (cotton) 6101-6117 Shirts = 6105
Iron & steel 7201-7229 Steel pipes = 7306
Machinery 8401-8483 Motors = 8501
Electrical items 8501-8548 Cables = 8544
Vehicles 8701-8716 Car = 8704
Plastic goods 3901-3920 Plastic bags = 3923
Chemicals 2701-2930 Fertilizers = 3102
Oils & fats 1501-1522 Vegetable oil = 1515
Wood products 4401-4421 Plywood = 4412
Paper & paper products 4801-4823 Notebook = 4811
Glass & glassware 7001-7020 Bottles = 7010
Ceramic ware 6901-6915 Tiles = 6908
Rubber products 4001-4017 Rubber tubes = 4009
Leather goods 4201-4205 Leather shoes = 6403
Jewelry 7102-7118 Gold ornaments = 7108
Medicines & pharma 2933-2934 Tablets = 3004

How Does HSN Code Relate to GST Rate?

HSN code doesn't determine the GST rate, but they are related.

  • Example: HSN 6105 (cotton shirts) can have different rates: 0% (handloom), 5% (regular), 12% (special)
  • Once you know the HSN code, check with the GST department or your CA to confirm the exact rate

Important Tips

Keep these points in mind:

  • Mandatory requirement: Must be shown in invoices for amounts above 1,50,000 rupees
  • Rule 46 compliance: Best practice is to include it in all invoices, even for smaller amounts
  • Decide once and keep it fixed: Choose the HSN code for your product and keep it consistent on every invoice
  • When in doubt: Ask your chartered accountant — it's worth the consultation
  • Keep it consistent: Don't change HSN codes arbitrarily (unless the product itself changes)

Common Mistakes

  • Wrong HSN code: Copying the code from a similar product (not finding the exact code)
  • Not including the HSN code: Invoices above 1,50,000 rupees could become invalid
  • Inconsistency: Using the HSN code on the invoice but not on the purchase bill can cause input tax credit claim issues
  • Changing HSN codes repeatedly: This will raise questions during GST audits

HSN Code in GSTBill

When you save products in GSTBill, enter the HSN code. It will then be automatically included in every invoice.

Related Resources:

Summary

HSN code = 6-digit product identifier. It must be shown in GST invoices. Find it from the official list, keep it consistent, and ask your CA if you have doubts.

Enter HSN Code for Your Products, GSTBill Will Auto-Fill It

Set up your products with their HSN codes. They'll be automatically included in every invoice.

Get Started →

Spending 10 minutes to find the correct HSN code is worth a lifetime of GST compliance.